PROPOSED LION FOUNDRY AND ENGINEERING COMPANY.

New Zealand Times, Volume XXXII, Issue 5132, 4 September 1877, Page 3

PROPOSED LION FOUNDRY AND ENGINEERING COMPANY.

A meeting of persons ’ interested in the formation of a limited liability company for the purchase and carrying on of Mr. B. W. Mills’ Lion Foundry business was held at Mr. Hunter’s rooms yesterday. Mr. Krull was voted to the chair, and having read the circular convening the meeting, stated that the objects of the company were as follows “The-company is projected for the purpose of buying the iron foundry and engineering business of Mr. E. W. Mills, he having decided, for various reasons which he himself will explain to you, to dispose of this highly lucrative business. The sum required for the purchase of the freehold and leasehold property, building, plant, and goodwill is £25,000. On receipt of half this amount (£12,500), Mr. Mills will hand over the business, together with all work in progress, contract or otherwise ; such to be taken at a valuation. The balance (£12,500) will be allowed to remain for a term of ten years at 7 per cent.; but payment can be made at any time during ° this term either of the whole amount or of any portion thereof, provided such payments are made in sums of not less than £IOOO, and that three months’ notice be given. “It is proposed to form the company with a nominal capital of £IO,OOO, in 4000 shares of £lO each, of which £4 per share im called up by payment of 10s. per share on application, 10s. on allotment, and three calls of 20s, each at intervals of three months. With the sum thus realised (£16,000), the payment of the moiety of the purchase-money (£12,500) oould be made, and the balance of £3500 retained as a working capital. “ It is confidently anticipated that in a year or two’s time the, land on which the foundry now stands would become so valuable as to justify the removal of the buildings aud plant to some suitable site on the Te Aro reclamation, or elsewhere, and the sale of the present site. The sum realised by such sale would probably equal the whole amount now required for the purchase of the entire property. “ Apart from the value of the property as a speculation, the business being of a highly profitable character, will yield a large return on the capital employed, and would therefore secure to shareholders an immediate return in the shape of handsome dividends. “ With a large and influential body of shareholders, the business is capable of extension to a degree practically unlimited.” Mr. Zohrab stated that 180 persons had signified to him their intention of taking an interest in the company. ■ Mr. Mills said his reason for parting with the foundry business was that he had other business to look after, aud that the work at the foundry had reached such dimensions that he was quite unable to attend to it properly; and none of his family having been brought up' to the business there was no one to step into his shoes. He had been advised, to take this course some time ago, but the foundry business was really such agood thing that he did not then like t 6 give it up. He was himself prepared to take 250 shares in the proposed company. The net profit for twelve months had been upwards of £SOOO, and he should not part with the concern if it were not for the reason stated. The foundry had been established for twenty years. It began in a small way—a shop with some half dozen men—and now was one of the leading establishments of the colony, and oould turn out as good work as could be produced in any part of the world; As the concern progressed he had kept on adding to the plant, and bad always kept in advance of the times.

Mr. Travers said he had had a conversation with Mr. Brabazon Smith, who had experience in these matters. That gentleman c- nsidered that a foundry on a large scale at Wellington would be a good investment ; but he did not think the site of Mr. Mills’ present foundry the best. He would prefer Kaiwarra. When the railway was opened to the Wairarapa there would no doubt be a large increase in the demand for ironwork. He was also of opinion that the'capital should be larger than £40,000. His (Mr. Travers’) own opinion was that the concern might be made a success by the expenditure of sufficient capital, and by the work being carried on under the supervision of athoroughly competent manager, who should be paid a salary commensurate with the undertaking. On the motion of Mr. Thomson, seconded by Mr. A. Young, it was resolved, —That it is desirable to form a company on the basis proposed. The following gentlemen were nominated provisional directors, with power to add to their number : Messrs. J. Plimmer,' A. Young, E. W. Mills, Dr. Buffer, W. Hickson, R. J. Duncao, J. R. George, - T . S. M. Thompson, J. F. E. Wright, and F. Krull. Mr. Zohrab was appointed - secretary pro tern,., and instructed to issue a prospectus aud take the other steps necessary for the formation of the company.

A vote of thanks to the chairman terminated the proceedings.